Activity Update: Production
Roc Oil Company Limited
18 September 2007
18 September 2007
ROC OIL COMPANY LIMITED ('ROC')
STOCK EXCHANGE RELEASE
ACTIVITY UPDATE: PRODUCTION
ROC's net production currently approximates to 12,900 BOEPD from six fields in
four countries, including the most recent addition to its production portfolio,
the Blane Oil Field in the North Sea. The production spread is: 37% China; 33%
Australia; 27% UK and 3% Africa. Between now and the end of 2007, ROC expects
that the Company's total production will remain within a 10,000 - 12,000 BOEPD
range, as forecast in October 2006 (Attachment 1*), subject to normal industry
risk factors.
A number of corporate milestones have been achieved as a result of the Company's
recent production performance including:
• Within a week of first production at the Blane Oil Field in the North
Sea, this two-well field demonstrated the capacity to produce more than the
pre-start up estimate of 17,000 BOEPD gross (net ROC: 2,125 BOEPD) which is
the level at which production is being currently maintained.
• Production at the Enoch Oil and Gas Field in the North Sea, has largely
met expectations since it commenced more than three months ago with most
recent production rates of approximately 12,000 BOEPD (net ROC:1,450 BOEPD).
• In early September 2007, 16 months after production commenced, the
ROC-operated Cliff Head Oil Field in Western Australia, produced its 4
millionth barrel of oil representing 22,450 man days without a Lost Time
Injury. Current production for Cliff Head is approximately 11,500 BOPD (net
ROC: 4,275 BOPD).
• So far during 2007 production from the C and D fields in the Zhao Dong
Block, offshore China, has underperformed expectations. There are a number
of reasons for this production performance, including inclement weather,
down hole equipment malfunction and a degree of reservoir complexity, all of
which are being addressed. Current production at Zhao Dong approximates to
20,000 BOPD (net ROC: 4,900 BOPD). Since ROC acquired the asset in mid-2006
the fields have produced approximately 9.4 MMBO and operations are on track
to achieve two years without a Lost Time Injury on 1 October 2007.
Fabrication of the C4 production facilities has commenced and production is
still expected to start in Q4 2008.
Commenting on ROC's production portfolio the Company's CEO, Dr John Doran,
stated that:
'The combination of a six field production base and a potential high impact
eight well exploration drilling programme offshore China and onshore Angola -
including two current wells, Cevada-1 and Soja-1, in Angola - provides ROC
shareholders with a balanced exposure to both the current high oil price and
exploration upside.'
(*For a copy of Attachment 1 please see ROC's website:
http://www.rocoil.com.au/Public/Announcement/2007/Activity_Update_180907.aspx)
In accordance with ASX and AIM Rules, the information in this Release has been
reviewed and approved by Dr John Doran, Chief Executive Officer, Roc Oil Company
Limited, BSc (Hons) Geology, MSc and PhD. Dr Doran, who is a member of the
Society of Petroleum Engineers, has more than 30 years relevant experience
within the industry and consents to the information in the form and context in
which it appears.
Damian Fisher
General Manager
External Affairs & Investor Relations
For further information please contact:
Dr John Doran on
Tel: +61-2-8356-2000
Fax: +61-2-9380-2635
Email: jdoran@rocoil.com.au
Or visit ROC's website: www.rocoil.com.au
Dr Kevin Hird
General Manager - Business Development
Tel: +44 (0)20 7495 5707/+61 (0)2 8356 2000
Mob: +44 (0)7751 3671 49/+61 (0)417 261 727
Email: khird@rocoil.com.au
Michael Shaw
Oriel Securities Limited (Nominated Adviser)
Tel: +44 (0)20 7710 7600
Bobby Morse
Buchanan Communications
Tel: + 44 (0)20 7466 5000
Fax: + 44 (0)20 7466 5001
E-Mail: bobbym@buchanan.uk.com
Mob: +44 (0)7802 875 227
This information is provided by RNS
The company news service from the London Stock Exchange